The smart grid market is estimated to grow from USD 19.77 Billion in 2016 to USD 65.42 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 27.0% during 2016–2021. The base year considered for the study is 2015 and the market size forecast is from 2016 to 2021. The objective of the research study is to provide detailed information regarding the key factors influencing market growth; strategically analyze subsegments with respect to individual growth trends, future prospects, and contribution to the total market; analyze opportunities in the market for stakeholders; provide strategic profiles of the key players in the market to comprehensively analyze the core competencies; and draw the competitive landscape of the market

The research methodology used to estimate and forecast the smart grid market begins with capturing data on key vendor revenues and the market size of the individual segments through secondary research. The vendor offerings are also taken into consideration to determine market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global market from the individual technology segment in the market. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key industry personnel, such as CEOs, VPs, directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and to arrive at the exact statistics for all segments and subsegments. The breakdown of profiles of primary discussion participants is depicted in the below figure:

The smart grid distribution management software segment is expected to grow at the highest CAGR during the forecast period. The initial findings about the market depicts that rising demand for smart grid technology solutions, increasing adoption of distributed renewable generation, and regulatory pressure for reducing carbon emission are some of the major driving factors for this market.

The services segment is further divided into consulting, deployment & integration, and support & maintenance services. Compared to software, the services segment is expected to grow at the highest CAGR during the forecast period. The services in the smart grid market are aimed at enabling smart and coordinated decision making process and mitigating the risks and vulnerabilities of the market using efficient tools and techniques.

The smart grid market is segmented into five regions, namely North America, Asia-Pacific (APAC), Europe, Middle East and Africa (MEA), and Latin America. The analysis shows that the spending on smart grid is increasing globally due to the increasing Information and Communications Technology (ICT) integration across utilities, especially in developing regions. North America is projected to dominate the smart grid market during the forecast period owing to technological advancements and early adoption of smart grid software and services in the region. The market in APAC is expected to grow at the highest CAGR between 2016 and 2021.

The adoption of smart grid software and services is accelerating at a steady pace in the developing regions, such as APAC and MEA. However, interoperability and standard interface issue is a major restraining factor for the growth of the smart grid market. However, worldwide increase in smart grid deployments is expected to provide significant growth opportunities.

On a strategic front, many companies are utilizing different growth strategies, such as mergers & acquisitions, partnerships & collaborations, and product development to increase their share in the smart grid market. In November 2015, General Electric (GE) acquired Alstom’s power and grid business. This acquisition transformed GE’s offering in the energy sector as Alstom has added to its core industrial growth of the energy business. Recently, in May 2016, Oracle announced the acquisition of Opower, the leading provider of customer engagement and energy efficiency cloud services to utilities. With this acquisition, Oracle has become the largest provider of mission-critical cloud services to USD 2.3 trillion utility sectors. Some of the major technology vendors include ABB Group, General Electric Company, International Business Machine, Itron Inc., Landis+Gyr AG, Oracle Corporation, Schneider Electric SE, Siemens AG, Cisco Systems, Inc., and Open Systems International, Inc.

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